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How is PVF@6.08 and Disc CF calculated here? Value of stock Present value of cash flows arising from it. Computation of dividend Div D1 D2
How is PVF@6.08 and Disc CF calculated here?
Value of stock Present value of cash flows arising from it. Computation of dividend Div D1 D2 D3 D4 D5 D6 Formula Amount DO (1g)S1.84 011113) |$ 1.98 D2 1+g)S2.14 D41tg)S 2.50 D5(1+g)$2.56 $ 2.56 / ( 6.08%-2.50% ) $ 2.56 / 3.58% $71.52 Computation of value of stock: Particular Cashflow PVF @ 6.0 Disc CF D1 D2 D3 D4 D5 P5 $ 1.840.9427$ 1.73 1.98 0.8887$ 1.76 7 $ 1.79 $ 2.310.7897$ 1.83 $ 2.500.7444$ 1.86 $ 71.520.7444$ 53.24 $ 62.22 $ 2.140.837 Value of stockStep by Step Solution
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